REPORT TO THE CITY COUNCIL FROM: PAUL AMICO, PE, Interim Director Department of Public Utilities BRYON HORN, Chief Information Officer Information Services Department BY: ANTHONY WHITE, MBA, Assistant Director Department of Public Utilities - Water Division CYNTHIA FISHER, Water System Manager - Certified Department of Public Utilities - Water Division SUBJECT ..Title Approve the Cooperative Purchase Agreement with The Drala Project, Inc., dba The Redesign Group, for the purchase of enterprise-grade service and storage units for Supervisory Control and Data Acquisition (SCADA) System Upgrades, for an amount not to exceed $519,302.00, through California Participating Addendum No. 7-23-70-55-01 under NASPO ValuePoint Master Agreement No. 23026 with Dell Marketing L.P. ..Body RECOMMENDATION Staff recommend that City Council approve the purchase of three Enterprise-grade Servers and three Enterprise-grade Storage Units for an amount not to exceed $519,302.00 to upgrade critical SCADA infrastructure; and authorize the Director of Public Utilities, or designee, to execute the necessary documents on behalf of the City of Fresno (City). EXECUTIVE SUMMARY The Department of Public Utilities - Water Division operates multiple Supervisory Control and Data Acquisition (SCADA) systems across the City's water production and treatment sites. Critical components of these systems, including servers and storage units, have reached or surpassed end-of-life (EOL) status, jeopardizing system reliability, cybersecurity, and supportability. To ensure continued system performance, data redundancy, and successful transition to future SCADA environments, staff proposes the purchase of three Enterprise-grade Servers and three Enterprise-grade Storage Units under a cooperative purchasing agreement for a total cost not to exceed $519,302. Funding is available in the Water Division's Fiscal Year 2025 Capital Improvement Program Budget. BACKGROUND The SCADA systems utilized by the Water Division monitor and control the City's groundwater and surface water production and treatment processes. Currently, the servers at the Southeast Surface Water Treatment Facility (SESWTF) have been in service for over eight years, with warranties expired, leaving the equipment vulnerable to failures without vendor support. Additionally, offsite storage appliances serving the SCADA systems at various water facilities have also reached EOL, with active service contracts expiring by June 2025. One of the units has already expired without renewal eligibility. To address these issues: 1. Three Enterprise-grade Servers will replace outdated SCADA servers at SESWTF, which will increase hardware reliability, firmware security, and compatibility with forthcoming SCADA software updates. 2. Three Enterprise-grade Storage Units will replace aging offsite storage appliances, bolstering SCADA system redundancy, data backup, and replication across facilities to reduce potential downtime during failures. 3. Support costs for existing units has increased 1000% and is not a viable option to maintain and continue using existing equipment. To ensure compliance with procurement regulations and achieve competitive pricing, the City will procure the equipment through the NASPO ValuePoint Cooperative Purchasing Program under California Participating Addendum No. 7-23-70-55-01, referring to Master Agreement No. 23026 with Dell Marketing L.P. The associated 10X form (9295) was submitted and approved on April 21, 2025. The Information Services Department (ISD) has reviewed and approved the procurement of this equipment. ENVIRONMENTAL FINDINGS In accordance with the California Environmental Quality Act (CEQA) Guidelines Section 15378, the approval of this purchase is not a "Project" for the purposes of CEQA. LOCAL PREFERENCE Local preference was not implemented because this item is a cooperative purchase. FISCAL IMPACT There is no fiscal impact to the General Fund. Funding for this purchase is included in the Fiscal Year 2025 Capital Improvement Program Budget within the Water Division's Enterprise Fund 4000-4001 under Project 411500723 - SCADA Segregation?. Attachments: Cooperative Purchase Agreement Quote Summary - SESWTF Refresh + Additional Storage 10X Form 9295